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Dmitry [639]
2 years ago
13

Which one of the following is the most likely reason why a stock price might not react at all on the day that new information re

lated to the stock’s issuer is released? Assume the market is semi strong form efficient.Company insiders were aware of the information prior to the announcementInvestors do not pay attention to daily newsThe information was expectedInvestors tend to overreactThe news was positive
Business
1 answer:
Vaselesa [24]2 years ago
5 0

Answer:The information was expected is the most likely reason why a stock price might not react at all on the day that new information related to the stock’s issuer is released. Assuming the market is semi strong form efficient.

<u>Explanation:</u>

The major reason that the stock price might not react to the information related to that stock was the expectancy of information in advance. It was a piece of expected information. When something is expected then our response towards it does not bring much change.

Similarly, when it is already expected to get some information related to the stock, on receiving that information the stock price does not react. It means it might neither fall nor rise.

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